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Janus, Henderson outline cost reductions from proposed merger

Officials of Janus Capital Group and Henderson Group said 25% of the $110 million that they say will be saved annually by the merger of the two money managers will be achieved from eliminating duplicate efforts among the firm's investment and trading teams, shows pre-merger disclosures filed with the Securities and Exchange Commission.

The forms, known as F4, do not state which teams will be eliminated, but among investment strategies, the money managers have overlap in some fixed-income and equity strategies.

The disclosures said the biggest chunk of post-merger cost reductions — 50% to 55% — will come from back-office consolidation, including a reduced work force, consolidation of offices and staff operating expenses.

The remainder, around 20%, will come from distribution and marketing reductions, including merging teams in adjacent regions, the filings say.

Denver-based Janus and London-based Henderson announced in October they would be merging, which was one of the largest announced merger and acquisition deals in the financial services industry in 2016. They announced their projections at the time that the merger would bring $110 million in cost savings, but the F4 filings contain the first specific details.

The merger is subject to the approval of shareholders of both companies. The votes are expected next month.

Janus spokesman Taylor Smith said the company could not comment beyond the filing.